Issue 128 • August 2017

Streetlight Effect and Transmission Expenses in Brazil


In this issue, we analyze if investments in transmission reinforcements in Brazil are being done in the best possible way and if transmission costs are being efficiently shared between generators and demands.


In this issue, we deal with the following topics: (i) Decree no. 9143, which changed the commercial model of the electricity sector; (ii) the issue of relief from responsibility (yes, again!); (iii) public consultation on the physical guarantees reduction limits for plants participating in the MRE; and (iv) the new energy auctions A-4 and A-6 of 2017.


In this section, we deal with regional electrical interconnections; focusing on the so-called “Arco Norte”, an interconnection between Guyana, Suriname, French Guiana and Brazil, we will discuss the challenges of this project and its positive and potentially negative aspects.


The international section presents an overview of reliability mechanisms adopted by various countries and also the latest moves to ensure supply security and meeting the electrical demand.


This section features the updated balance of energy demand and structural supply for the coming years, including our traditional delay meter.

Electronically published since 2006, the PSR Energy Report is a monthly newsletter developed by PSR, whose main objective is to present a comprehensive and current analysis of regulatory, legal issues, water resources and environment and supply of the electricity sector in Brazil.